Owens Corning Inc Common Stock New (OC)

Owens Corning makes insulation, roofing shingles and glass fibre — materials for a house inside and out.

Roofing is the most profitable part and is conveniently structured: a roof lasts about twenty years, then leaks, and is replaced regardless of whether new housing is being built. A hurricane or hailstorm in one state creates years of demand at a stroke.

Insulation depends more on new construction, but is supported by tightening building energy efficiency requirements. Glass fibre goes into industry and wind turbine blades. The company sold its composites glass fibre line and bought a door manufacturer, concentrating on housing. Risks: mortgage rates, asphalt and energy prices. A dividend is paid.